Exchange-traded funds (ETFs) are critical for retirees seeking income. Unlike relying solely on Treasuries or cash, ETFs provide diversified exposure to various assets. They allow investors to dodge downturns in specific assets, are tax-efficient, and offer automated rebalancing. New retirees should consider ETFs from reputable providers for strong yields and safety. Stocks within ETFs can mitigate inflation effects, making them valuable for the upcoming decades. Notable ETFs include SPHD for low-volatility dividend stocks and PGX for higher-yield preferred equities.
Exchange-traded funds (ETFs) are must-haves if you're currently in retirement and you're looking for income. Many people focus solely on Treasuries or a mix of individual stocks and Treasuries, but you're missing out if you're not considering ETFs.
ETFs allow investors to invest in a basket of assets, thereby avoiding crashes in any particular asset. They are often tax-efficient and rebalance on their own if certain assets underperform for prolonged periods.
For the average retiree, I'd look for an ETF from a reputable provider that provides a strong yield and safety. A new retiree in his or her 60s or 70s could still have decades left in retirement.
As such, ETFs with some exposure to the stock market are recommended. Stocks act as a hedge against inflation, and shares of quality businesses won't let you down in the long run.
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